Pershing expands its digital advice with NextCapital partnership

The robo chooses its first custodian for its own expansion

Feb 23, 2016 @ 6:00 am

By Alessandra Malito

+ Zoom

Pershing LLC has partnered with NextCapital, an adviser-facing robo platform, to be its first custodian.

This time, however, the robo has chosen Pershing as the custodian in what Rob Foregger, co-founder of NextCapital, said is the company's expansion to offer automated investment advice outside of defined contribution plans where the robo got its start. Pershing, based in Jersey City, is a clearing firm unit of Bank of New York Mellon Corp, and is the first custodian NextCapital has chosen to custody its assets.

"Our broader vision is really actually being able to help our partners manage their client's entire lifecycle," Mr. Foregger said.

NextCapital, which started in the retirement market providing digital advice to defined contribution plans, already integrates with 401(k) record keeping systems and supports 401(k)s, individual retirement accounts and retail brokerage accounts on its platform. With the partnership, NextCapital will assist advisers in providing holistic portfolio tracking, planning, savings and portfolio management advice for out-of-plan moments, including rollover and retirement income options.

Pershing was ranked seventh in number of custodian clients, according to InvestmentNews research.

Mr. Foregger said NextCapital plans to be multi-custodial in the future.

Last summer, Pershing teamed up with Marstone, a business-to-business robo-adviser. In that case, the custodian had chosen Marstone to offer its advisers a robo option for working with clients. Ben Harrison, head of business development and relationship management at Pershing Advisor Solutions, said it is continuing to expand its digital offerings.

"On the client front, having the ability of a firm like NextCapital to provide a high-powered experience is something we see a tremendous opportunity for institutions," Mr. Harrison said.

0
Comments

What do you think?

View comments

Recommended for you

Sponsored financial news

Featured video

Events

Inside the first robo ETF

When it comes to exchange-traded funds, innovations come in all shapes and sizes. Check out Robo Global's Bill Studebaker discussing the first robo ETF.

Video Spotlight

Are Your Clients Prepared For Market Downturns?

Sponsored by Prudential

Recommended Video

Path to growth

Latest news & opinion

Jerry Schlichter's fee lawsuits have left an indelible mark on the 401(k) industry

After a decade of litigation, fees are lower and retirement plans are more transparent. But have the lawsuits gone too far?

10 best financial adviser jokes

How many financial advisers does it take to screw in a lightbulb?

With margins crashing, broker-dealers look to merge: report

Increased regulation is straining profit margins among broker-dealers, sending many of them into the arms of their bigger brethren.

Hackers may have profited from SEC breach

The hack of the agency's Edgar filing system occurred in 2016, but the regulator didn't conclude until last month that the cybercriminals may have used their bounty to make illicit trades.

Top 10 financial firms ranked by investor satisfaction

Find out which firm took the top slot for overall investor satisfaction for the second year in a row.

X

Subscribe and Save 60%

Premium Access
Print + Digital

Learn more
Subscribe to Print